Direct plans offer higher NAV as they save on distribution expenses
Insurance is a risk-management tool. If you are the sole earning member, any unfortunate incident involving you may cause hardships to the family. You should take adequate life insurance so that your family continues to maintain the same standard of living and can meet financial goals like sonís education and marriage. You should preferably take adequate term insurance for this.You should also take an accident insurance for yourself and a health cover for all members.
I am in a middle-management job and fear that my employer may reduce/stop the health insurance cover. I am 52 years old, my wife is 46 and our daughters are 21 and 16. Should I take an individual or a floater policy?
You should contact your current provider and negotiate for individual health policies since premiums for a family floater policy will be linked to your age and be expensive at 52 years. Further, your daughters will be out of the floater policy cover once they are no more dependent on you, but you will continue to pay the premiums. The cover will depend on the future cost of hospitalisation and medial treatment. It is advisable to take an individual cover of R5 lakh each and an additional topup of R5 lakh, which can take care of the cost of major illnesses.